Best Judgment Assessment Orders Stand Deemed Withdrawn Upon Furnishing Returns and Remitting Dues Under Section 62(2)
Best Judgment Assessment Orders Stand Deemed Withdrawn Upon Furnishing Returns and Remitting Dues Under Section 62(2)
Issue
Whether best judgment assessment orders passed under Section 62 of the APGST/CGST Act stand deemed withdrawn when the assessee subsequently furnishes GSTR-3B returns along with tax, interest, and late fees, and explains the delay in filing.
Facts
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Non-Filing of Returns: The petitioner, a registered person under APGST, failed to file GSTR-3B returns for the periods March 2024, April 2024, and August 2024.
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Best Judgment Assessment: Due to the non-filing of returns within the statutory timeframe, the Department passed assessment orders under Section 62 dated 22.05.2024, 14.06.2024, and 01.11.2024.
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Subsequent Compliance: The petitioner subsequently filed the GSTR-3B returns for all three default months and paid the full tax liability along with applicable interest and late fees.
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Reason for Delay: The petitioner explained that the delay in filing the August 2024 return occurred because its GST registration had been cancelled retrospectively and was only later revived upon successful appeal.
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Writ Petition: The petitioner approached the court seeking a declaration that the assessment orders were deemed withdrawn under Section 62(2) following complete compliance.
Decision
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Section 62(2) mandates the deemed withdrawal of best judgment assessment orders passed under Section 62 once valid returns are furnished by the assessee.
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The petitioner successfully satisfied all statutory preconditions by submitting the returns and remitting the requisite tax, interest, and late fees.
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Since the delay in filing the August 2024 return was satisfactorily explained due to the interim cancellation and subsequent revival of GST registration, the delay was condoned to give full effect to Section 62(2).
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Consequently, the assessment orders dated 22.05.2024, 14.06.2024, and 01.11.2024 were held to be deemed withdrawn, barring the Department from initiating recovery proceedings under those orders.
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The issue was decided in favour of the assessee.
Key Takeaways
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Automatic Benefit of Section 62(2): Furnishing valid GSTR-3B returns along with tax, interest, and late fee payments triggers the statutory mechanism under Section 62(2), rendering original best judgment assessment orders inoperative.
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Condonation of Reasonable Delay: Administrative or procedural delays in filing returns—such as those arising from registration cancellation and appellate restoration—warrant condonation to ensure benefit under Section 62(2).
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Bar on Revenue Recovery: Once Section 62(2) is satisfied, tax authorities lose jurisdiction to enforce demands or initiate recovery actions based on the superseded best judgment assessment orders.
HIGH COURT OF ANDHRA PRADESH
Surya Sreebhavani Infrastructure (P.) Ltd.
v.
Assistant Commissioner of State Tax
R RAGHUNANDAN RAO and T.C.D. SEKHAR, JJ.
WRIT PETITION NO. 12881 of 2026
MAY 6, 2026
R. Raghunandan Rao, J.-Heard Sri A. Sarveswar Rao, learned counsel for the petitioner and the learned Government Pleader for Commercial Tax appearing for the respondents.
2. The petitioner, who is a registered person, had not filed his returns for the months of March, April & August-2024. Consequently, the assessment orders under Section 62 of the Andhra Pradesh Goods & Service Tax Act, 2017 [for short “the Act, 2017”] came to be passed in relation to these periods. Thereafter, the petitioner filed his GSTR-3B returns and paid the tax, interest and late fee for taking the said returns on file.
3. The learned Government Pleader for Commercial Tax appearing for the respondents, on instruction, submits that the returns have been filed and no dues remain.
4. The details of these orders and payments are given below the table itself.
| Month | Date of order | Total tax liability as per order in Rs. | Date of GSTR-3B | Tax | Interest | Late fee paid | No of day from date of order till GSTR-3B |
| Mar’2024 | 23.05.24 | 1,17,443 | 28.09.24 | 1,67,882 | 16,009 | 2,000 | 128 |
| Apr’2024 | 14.06.24 | 1,17,444 | 29.09.24 | 1,78,402 | 10,038 | 2,000 | 106 |
| Aug’2024 | 01.11.24 | 2,41,398 | 07.07.25 | 1,72,906 | 12,067 | 5,000 | 248 effective number of days shall be 11 days. |
5. Sri A. Sarveswar Rao, learned counsel for the petitioner would submit that the delay in the filing of the GSTR-3B returns was also on account of the cancellation of the registration of the petitioner on 20.03.2025 with effect from 31.07.2024. It is contended that it is only after the cancellation of the registration had been revoked by the appellate authority on 26.06.2025 that the petitioner was able to deposit the remaining tax interest and late fee.
6. Section 62(2) of the Act, 2017, stipulates that any order of assessment passed under Section 62 of the Act, 2017, would be deemed to have been withdrawn upon necessary returns being filed by the registered person, along with payment of tax, interest and late fees. In the present case, the petitioner has taken the necessary steps. However, the delay in the filing of the returns for the month of August-2024 has been explained and as such, the said delay requires to be condoned.
7. In view of the aforesaid observations, this Writ Petition is disposed of by declaring that the orders of assessment dated 22.05.2024, 14.06.2024 and 01.11.2024 shall be deemed to have been withdrawn and the respondents cannot recover any tax on account of these assessment orders. There shall be no order as to costs.
As a sequel, pending miscellaneous applications, if any, shall stand closed.